Omar calls for early decision on J&K bank chief’s extension
Omar Abdullah asked the Reserve Bank to expedite the proposal to extend the term of the Chairman of J&K Bank, Mushtaq Ahmed
Mumbai: Alleging that a “propaganda war” is being played because of indecision, Chief Minister Omar Abdullah today asked the Reserve Bank to expedite the proposal to extend the term of the Chairman of government-promoted J&K Bank, Mushtaq Ahmed, at the earliest.
“Uncertainty for any institution is not a good thing. People take advantage of that (uncertainty). A request has been put in to RBI and this has to be approved by RBI,” Abdullah said at a bank event here, which also had RBI Deputy Governor H R Khan in attendance.
“This cloud of uncertainty is giving people an opportunity to play a propaganda war,” he said, alleging that media reports are being planted by certain elements within the bank opposed to Mushtaq’s candidature on a regular basis.
The Jammu & Kashmir government owns over 53 per cent in the Srinagar-headquartered bank. Sector regulator RBI clears senior-level appointments at all the lenders.
“For some reason, the decision is taking a little longer than we would like,” Abdullah said.
According to a senior bank official, Mushtaq’s three year term comes to an end in mid-October and a formal proposal to extend his term following a board meet was sent to RBI three months ago.
Khan declined to comment on the issue. Earlier, Khan said that the RBI will “shortly” roll out new banks. This move, coupled with the discussion paper on the structure of banking in the country, will expand banking landscape in the country.